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Auditors push real estate players to buy title insurance, threaten to quit if they don’t

Accounting firms are turning up the heat on real estate developers to push them to buy insurance for projects Sources told that several accounting firms have threatened to stop working with them unless they buy a title insurance cover. Compliance costs under RERA are high and we do not want to be held up for the company not adhering to the minimum requirements of the laws, said a senior official. Title insurance refers to insurance for the title of a real estate property and is mandatory, according to the Real Estate (Regulation and Development) Act 2016.

Auditors threatening to quit could be detrimental, considering promoters of real estate projects need certified chartered accountants to look into their accounts and give necessary certificates that the project money is being utilised for the right purposes and that they have the necessary legal permissions in place.

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